Weekly VC Insights by Uniborn #4

The third quarter turned out to be a nightmare for the VC market. So is there any chance for improvements? Find some controversial opinions inside.
Elena Cherkas
🇪🇪 Uniborn Team
3 min read

Hello! Uniborn is back on the line. We sourced the leading news and events of the past week.

Inside you will find fourth-quarter predictions, ethical red flags from investors, an interview with Skype’s co-founder, and some unexpected viewpoints on what is happening in the industry.

🔥 The third quarter turned out to be a nightmare for the VC market. So is there any chance for improvements?

If a renaissance happens, it won't be in the upcoming months.

Alex Wilhelm, editor-in-chief of TechCrunch+, suggests that founders should not expect a significant change in the fourth quarter and emphasizes that although many are waiting for a revival in the market, angels and VC firms are in no hurry to unfreeze agreements. 

Read Alex's reasoning in the TechCrunch+ article.

“Don’t ask, don’t tell” is how investors react to a market rollback

Maintaining mental health while running a blooming startup is not easy in itself, but in today’s reality, it is almost implausible. Business Insider tells the story of a founder whose company lost 96% of its capitalization amid the cryptocurrency market crisis and recession. So how do investors react to entrepreneurs' concerns?

Melia Russell's article is worth your time.

European venture funding plunged 44%

Crunchbase News' senior data editor Gené Teare talks about how the current crisis has hit European startups. However, despite a general slowdown in activity, European VC firms continued to raise record funds in 2022, and Series A funding has not dipped and remained at the same level as last year.

More statistics and charts you will find here.

European startup scene could take Silicon Valley off its pedestal, says Skype co-founder

Stephen Armstrong of Wired spoke with Skype co-founder Niklas Zennström about the change in the European venture capital landscape and why European startups could be at the helm of the next tech revolution.

Find details here.

Niklas Zennström,   Skype co-founder. Photograph: Cristopher Hunt. Source: wired.co.uk 
Niklas Zennström,  Skype co-founder. Photograph: Cristopher Hunt. Source: wired.co.uk 

🔥 These articles are worth discussing over your morning coffee

How much should startups pay their first 10 employees?

Miriam Partington of Sifted asked several investors and entrepreneurs how to adequately estimate wages of the first ten employees that would be commensurate with their contribution. An undivided opinion among several experts is that startups, on average, pay 30-40% less than corporations, so ​​hiring highly qualified specialists would be an act of disservice.

At the same time, it is essential to understand that the first employees lay the foundation for your future company. How not to miscalculate? More opinions in the Sifted article.

 6 investors reveal where they draw the line when faced with ethical issues

Rebecca Szkutak from TechCrunch along with notable investors, discussed red flags that raise ethical concerns.

By the way, at Uniborn, we use the Impact Index Methodology to determine startup flow — it favors startups that seek to solve the world's biggest problems.

What are the things investors are unwilling to turn a blind eye to, even if it is a very profitable deal? Read Rebecca's article.

Who are venture capitalists fooling with their fake fund sizes?

David Cruz e Silva is the founder and manager of a European venture capital fund. He's not new to the business and thinks it's important to talk about the negative aspects of venture capitalists in the region. For example, highly exaggerated announcements in the press undermine trust between ecosystem participants.

David's entire article is available here.

David Cruz e Silva. Source: Sifted.eu
David Cruz e Silva. Source: Sifted.eu

Some new venture firms are in a very, very (very) narrow niche

A venture capital company that specializes in dental startups? Why not!

Absurd examples of overly specialized VC and some conclusions can be found in the TechCrunch article.

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